Ricochet News

Businessmen appear in court for allegedly siphoning off R4.8 million meant for housing

Feb 16, 2018
Businessmen appear in court for allegedly siphoning off R4.8 million meant for housing

Three businessmen, aged between 49 and 60 years, appeared before the East London Magistrate's Court on Thursday for fraud and money laundering.

Cwenga Delazola Pakade, aged 52 years old; Mzamo Maxwell Thomas (60); and Gilbert Thanduxolo Zuka (49), were arrested by the Hawks’ Anti-Corruption Task team on Thursday morning.

"It is alleged that during March 2013 just over R61 million was transferred from the Social Housing Regulatory Authority (SHRA) to Camel Rock Social Housing Institution NPC," explained Hawks spokesperson, Captain Anelisa Feni.

"The amount was meant to fund the building of low and middle income rental apartments in the Eastern Cape.

"During April 2013, approximately R4.8 million was allegedly transferred from Camel Rock’s bank account to another business account where it was further transferred to individual accounts."

Captain Feni said that the Anti-Corruption Task team commenced with its investigations into this alleged crime during April 2013 after the Forensic Department of the bank reported the suspicious bank transactions of Camel Rock to the National Treasury, resulting in the amount of R56 million being frozen.

"Investigations further revealed that Camel Rock allegedly never complied with the provisions of Social Housing Institutions in first place," she said.

"The trio were each granted R5 000 bail and their next court appearance will be on 1 March 2018."